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Thought it is good to compare these two companies since these two are subjected to very hot discussion in this forum. A summary of the comparison given below.
- BLI has shown a double or triple growth in their loan book as well as interest income while SFL is just normal growth.
- Also both BLI & SFL have same amount of loan book but BLI earns twice as much as interest income compared to SFL, how come is a question to me.
- On the other hand both companies have similar amount of interest expenses but BLI finances its loan book mainly from borrowings which are supposed to be higher than customer deposits while SFL mainly finances through customer deposits. In fact SFL's deposit base is more than 100% higher than BLI. Therefore ideally SFLs interest cost should be much less than BLI but it is not the case, why is another question to me.
- BLI generates much superior ROE compared to SFL and BLI's share price also trading on the floor very aggressively compared to SFL. In fact BLI have very high negative valuation gap whereas SFL has a positive valuation gap. So comparatively BLI is expensive than SFL at the moment.
- So now my feeling is there is some thing wrong either in BLI or SFL. Now I will open this discussion for the forum members to express more views. In fact that will help to understand true state of affairs of this two.
| 2014/15 | 9M 2015/16 | |||||||
| BLI | SFL | BLI | SFL | |||||
| Rs mn | Growth | Rs mn | Growth | Rs mn | Growth | Rs mn | Growth | |
| Interest income | 672 | 143% | 1,051 | 6% | 1,546 | 207% | 817 | 4% |
| Interest expense | 174 | 110% | 620 | -7% | 421 | 223% | 444 | -5% |
| PAT | 144 | 125% | 27.5 | -67% | 514 | 376% | 84 | 307% |
| Deposits | 1,066 | 95% | 5,379 | 19% | 2,025 | 90% | 5,667 | 5% |
| Loans & advances | 3,091 | 212% | 4,936 | 10% | 5,423 | 75% | 5,349 | 8% |
| CMP (Rs) | 40.40 | 179.90 | 63.10 | 16.70 | ||||
| PER (times) | 15.1 | 41.2 | 13.2 | 12.5 | ||||
| OCF/share (Rs) | - 32.4 | 100.8 | - 17.1 | 1.7 | ||||
| ROE | 16.2% | 2.8% | 49.0% | 10.4% | ||||
| ROME | 6.6% | 2.4% | 10.1% | 10.7% | ||||
| Value gap | -9.6% | -0.3% | -38.9% | 0.2% | ||||
Last edited by EquityChamp on Fri Apr 22, 2016 2:51 pm; edited 1 time in total
